Athene Holding Updates IPO Outlook

By Chris Lange Updated Jan 12, 1:32PM EST · Published Mar 28, 10:40AM EDT

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Athene Holding Updates IPO Outlook — © Thinkstock

[cnxvideo id=”655237″ placement=”ros”]Athene Holding has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company values its offering of 25 million shares up to $1.5 billion, with an overallotment option for an additional 3.75 million shares. At this valuation, the company most likely will price its shares around $52 per share. Previously, the company had said its expected price range was $38 to $42 per share. The company intends to list its shares on the New York Stock Exchange under the symbol ATH.

The underwriters for the offering are Goldman Sachs, Barclays, Citigroup, Wells Fargo, Merrill Lynch, BMO Capital Markets, Credit Suisse, Deutsche Bank, JPMorgan, Morgan Stanley, RBC Capital Markets, BNP Paribas, Evercore ISI, SunTrust Robinson Humphrey, UBS Investment Bank, Keefe Bruyette & Woods and Sandler O’Neil.

This leading retirement services company issues, reinsures and acquires retirement savings products designed for the increasing number of individuals and institutions seeking to fund retirement needs. It generates attractive financial results for policyholders and shareholders by combining the two core competencies of (1) sourcing long-term, generally illiquid liabilities and (2) investing in a high-quality investment portfolio, which takes advantage of the illiquid nature of its liabilities.

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The company’s steady and significant base of earnings generates capital that it opportunistically invests across its business to source attractively priced liabilities and capitalize on opportunities. Athene’s differentiated investment strategy benefits from its strategic relationship with Apollo Global Management and its indirect subsidiary, Athene Asset Management (AAM).

AAM provides a full suite of services for the investment portfolio, including direct investment management, asset allocation, mergers and acquisition asset diligence, and certain operational support services, including investment compliance, tax, legal and risk management support. Athene’s relationship with Apollo and AAM also provides it with access to Apollo’s investment professionals across the world, as well as Apollo’s global asset management infrastructure that, as of September 30, 2016, supported more than $188 billion of assets under management across a broad array of asset classes.

As of the end of September, the company had grown to $73.1 billion in investments, including related parties, $71.6 billion in invested assets and $87.0 billion of total assets.

In the filing the company said:

Our organic channels have provided deposits of $8.8 billion, $3.9 billion and $2.9 billion for the years ended December 31, 2016, 2015 and 2014, respectively. Withdrawals on our deferred annuities were $4.2 billion, $4.4 billion and $4.4 billion for the years ended December 31, 2016, 2015 and 2014, respectively.

Athene intends to use the net proceeds from this offering for working capital and general corporate purposes.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.